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Metropolitan Wastewater Management Commission Reserves
<br /> EQUIPMENT REPLACEMENT RESERVES
<br /> The Equipment Replacement Reserve incorporates replacement funding for three types of
<br /> i equipment: 1) Major/Stationary equipment items costing less than $200,000 with useful lives of 20 '
<br /> .years or less; 2) fleet vehicles maintained by the Eugene Wastewater Division; and 3) computers at
<br /> the Water Pollution Control Facility. Contributions to Equipment Replacement. Reserves in the
<br /> .proposed FY 00-O1 budget total $674,908. Proposed expenditures from Equipment Replacement
<br /> Reserves in FY 00-O1 total $422,846. Additional budget detail is provided below:
<br /> Adopted Amended Proposed
<br /> Budget Budget Budget
<br /> FY 99-00 FY 99-00, FY 00-01
<br /> EQUIPMENT REPLACEMENT RESERVE
<br />
<br /> I Beginning Balance 6,063,340 6,671,823 7,104,984 y
<br /> Annual Equipment Contribution 667,608 667,608 674,908
<br /> Equipment Purchases (272,098) (626,446) (422,846)
<br /> Interest 300,000 300,000. 450,000
<br /> Ending Balance ~ 6,758,850 7,012,985 7,807,046
<br /> OPERATING RESERVE
<br /> The Operating Reserve is used to account for the accumulated operating revenues net of operations
<br />
<br /> ~i expenditures. The Commission has adopted a policy of maintaining a minimum Operating Reserve
<br /> balance equal to 10% of the adopted operating budget.
<br /> For FY 00-0 1, the proposed operating reserve budget includes components for operations,
<br /> maintenance, administration and equipment replacement reserve contributions, as well as an amount
<br /> dedicated to continue funding the Capital and Equipment Replacement Reserves. In FY 00-01 these
<br /> costs can be funded with user fees based on existing user rates. The amount of the Operating
<br /> Reserve on June 30, 2001 is proposed. at $830,304, which is equal to the 10% operating reserve
<br /> target. Additional budget detail for the Operating Reserve is provided below. r I
<br /> Adopted Amended Proposed
<br /> Budget Budget Budget
<br /> FY 99-00 FY 99-00 FY 00-01
<br /> OPERATING RESERVE
<br /> Beginning Balance 2,380,039 811,028 1,368,459
<br /> User Revenue 11,707,836 12,215,236 11,881,381
<br /> Other Revenue 54,124 466,288 340,991 +
<br /> Expenditures (8,415,837) (9,425,546) (9,185,960) x
<br /> Reserves (5,007,678) (3,360,272} (3,624,567)
<br /> Interest 100,000 100,000 50,000
<br /> Ending Balance 818,484 806,734 830,304
<br /> . i
<br /> Page 31 FY 00-01 BUDGET
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